Question: Projects A and B are mutually exclusive. The required return is 10%. Year Cash Flow (A) 0 -20,000 1 12,000 2 10,000 3 10,000 Which
Projects A and B are mutually exclusive. The required return is 10%. Year Cash Flow (A) 0 -20,000 1 12,000 2 10,000 3 10,000 Which project(s) would be finally chosen and why? Cash Flow (B) -175,000 80,000 35,000 125,000 A) Project B because it has a positive and higher NPV. B) Both projects A and B because they both have a positive NPV. C) Project B because it has a shorter payback period. D) Project A because it has the higher IRR. E) Project A because it has the higher IRR than the required return
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